unravelling eu quotas on textiles and clothing · the voluntary export restraints of the 1930s....

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Unravelling EU Quotas on Textiles and Clothing

Karen Jackson

Department for Development and Economic Studies

University of Bradford

1. Introduction

Trade in textiles and clothing has been the focus of trade policy makers since at least

the voluntary export restraints of the 1930s. More recently the impact of the phase-out

of the WTO Agreement on Textiles and Clothing (ATC) quotas has become the

subject of much debate. Particular attention has been paid to Chinese textile and

clothing exports and the temporary reintroduction of quotas. In addition there have

historically been a plethora of bilateral agreements governing the clothing and textile

trade. Given that the EU holds a dominant global position in terms of imports of

textiles and clothing it is of considerable importance to assess impact of the changing

pattern of EU quota restrictions. This assessment is timely since the EU has recently

almost completely removed quotas on textiles and clothing.

It is the temporary reintroduction of quotas with respect to China that is a testament to

the concerns raised by EU producers, and the response of European politicians,

regarding this new trading environment. There is also academic writing supportive of

the concerns of EU producers, such as Curran (2006) and Nordas (2004). It is the role

of this paper, in the new quota free clothing and textile market, to unravel the

complex quota arrangements of the past with a view to asserting whether the EU

producers have grounds for concern. This assessment avoids the CGE modelling,

which underlies much of the current debate. There have been concerns raised over the

use of this methodology in this context by Mayer (2005) and, Yeung and Mok (2004).

This paper will aim to identify if there is evidence that the results, centrally those

from CGE studies are in fact misleading.

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The paper begins by providing an overview of the trade arrangements concerning

textiles and clothing, followed by a discussion of the patterns of trade of textiles and

clothing. This will then be followed by an examination of quota restrictions.

2. Overview of EU quota restrictions on textiles and clothing

For decades clothing and textile trade was not subject to normal GATT rules. Thus

this use of import restrictions is widely debated. Table 1 gives an overview of

international arrangements from the 1930s to the present day. In addition to having an

notion of the arrangements in general it is important to consider the variety of

measures that have existed to restrict exports of textiles and clothing into the EU

market specifically. These measures have varied across exporters, member states and

products; where some exporters find themselves restricted according to bilateral

agreements instead of the international agreements discussed in Table 1.

Under the MFA 4, 1986-1994, the EC restrained 19 countries (compared to 23

countries under the MFA 3): Argentina, Brazil, China, Czechoslovakia (latterly the

Czech Republic and Slovakia), Hong Kong, Hungary, India, Indonesia, the Republic

of Korea, Macao, Malaysia, Pakistan, Peru, Philippines, Poland, Romania, Singapore,

Sri Lanka and Thailand1

In the early 1990s these quotas were allocated to member states according to

traditional trade patterns and a ‘burden sharing formula’, with the provision to transfer

quotas between member states. However the 1992 programme resulted in either the

. Although it was agreed that all textile products should be

restricted, in practice this was not the case. Restrictions varied across products and

countries, and were generally determined by the products importance in terms of

trade. Under the MFA 4 there were various flexibility provisions, including the

carrying over of unutilised portions of quota to the following year, using next year’s

quota and transferring a quota from one product to another. Most MFA quotas were

negotiated for the EU as a whole.

1 The EC formed an MFA agreement with Bangladesh that were not subject to restrictions.

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Table 1: International Arrangements for Clothing and Textiles

1930s - 1960 Voluntary Export Restraints (VERs)

VERs were adopted after the depression of the 1930s because developed countries felt that there was too much competition from developing countries in the textile and clothing industry.

1961

Short-Term Arrangement Regarding International Trade in Cotton Textiles (STA)

As the number of developing countries expanded the GATT forbade the use of import quotas and therefore the STA was agreed. Its purpose was to provide temporary protection for developed countries as well as reducing the introduction of

quotas. The STA allowed unilateral quotas to be imposed on countries when there were market distortions, and allowed the negotiation of bilateral quotas between developing country exporters and developed country importers. These quotas

were then allocated among domestic producers by the exporting country.

1962 - 1973

Long-Term Cotton Textile Arrangement (LTA)

The LTA said that countries should abolish their existing quotas and introduce new ones only if they were subject to (or would be subject to in the future) market distortions. These quotas could not be less than the trade before market distortions

and had to be increased at five percent per year. Obviously this arrangement went against the principles of GATT. However it was thought that unless this sacrifice was made there would be an increasing number of illegal constraints.

1974 - 1978

Multi-fibre Arrangement (MFA)

The MFA extended the LTA to include not just cotton but most fibres2. This arrangement allowed unilateral restrictions if there were market distortions, and bilateral agreements could be arranged but they were to be increased at six percent each

year (with the exception of special cases). This arrangement was seen to be less restrictive than the LTA since the controls were in line with the GATT and controls, which pre-dated the MFA, were only allowed if they conformed to the current

the MFA rules. There was also a ‘swing’ provision that allowed up to ten percent of unused quota to be carried over to the following year.

1978-1981 MFA 2

This arrangement differed from the MFA because it allowed for mutual agreements to withdraw from certain aspects of the MFA.

1981 - 1986

MFA 3

This arrangement reversed the provision made in the MFA 2 by allowing mutual agreements to withdraw from certain aspects of the MFA and replaced it with a more restrictive provision. There was also the introduction of a provision for what

should happen when there were sudden increases in the level of imports, even when these levels remained within the quota limits. In addition re-negotiations of restrictions by two countries were allowed, there was a method established to

monitor if import restriction were really temporary and unilateral restrictions were not allowed.

1986 – 1994

MFA 4

This arrangement covered a wider range of products, gave preferential treatment to the least developed countries, got rid of unused quotas if required, and promised a return to normal GATT rules in the near future.

1995 - 2005

WTO Agreement on Textiles and Clothing (ATC)

This agreement followed a four step process. At each step a larger percentage of products were brought under GATT rules3. For products that had quotas in place on 31 Dec 1994 these were also removed. The percentages applied to the importing

country’s textile and clothing trade levels in 1990. The agreement also said that the quotas should grow annually.

2005 - Textile and clothing sector integrated into normal GATT rules i.e. quotas abolished

2 This meant countries were less able to avoid the MFA as had been the case for the LTA where other types of fibres were used to avoid restrictions. 3 Step 1 (1 Jan 1995 – 31 Dec 1997): 16%; Step 2 (1 Jan 1998 – 31 Dec 2001): 17%; Step 3 (1 Jan 2002 – 31 Dec 2004): 18%; Step 4 (1 Jan 2005): 49%

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abolition of member state specific restrictions or their transformation into EU–wide

restrictions. Therefore from 1993 member states could issue import authorisations

valid in the whole EU market (subject to surveillance by a control system called

Integrated System of License Management). Under the ATC those restrictions agreed

under the MFA 4 were phased out between 1995 and 2005. The EC adopted a stage-

by-stage approach, in comparison to the US who submitted a programme stating their

intentions for the full period. Therefore the EC informed the Textile Monitoring Body

of their intentions at least 12 months in advance of the implementation of each stage.

There were also non-MFA measures affecting Albania, Bangladesh, Bulgaria,

Cambodia, the Soviet Union (latterly the relevant republics), Japan, Cyprus, Egypt,

Malta, Morocco, Tunisia, Turkey, Yugoslavia (latterly Bosnia-Herzegovina, Croatia

and the Former Yugoslav Republic of Macedonia), Chile, Bolivia, Paraguay,

Honduras, Laos, Venezuela, Costa Rica, Cuba, Ecuador, El Salvador, Nicaragua,

Vietnam, Nepal, United Arab Emirates, Mongolia, Belarus, Chinese Taipei and

People’s Democratic Republic of Korea4

Table 2

. The measures affecting Yugoslavia, Egypt,

Malta, Morocco, Tunisia and Turkey were negotiated along side their respective

association or cooperation agreements. In 1998 the Europe Agreements with Bulgaria,

Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovenia, the Czech Republic

and Slovakia resulted in the elimination of quota restrictions. In addition surveillance

on imports from Malta, Morocco and Tunisia ceased in 1998.

shows for eleven selected, significant, exporters into the EU market what

quota restrictions are present until 20055

To date there are no longer any quota restrictions in place towards WTO members,

although China did have the temporary re-introduction of restrictions until the end of

2007 following selected products either being deemed sensitive by EU producers or a

. We have already noted that it was from

1993 onwards that an EC level quota existed.

4 Some of these measures consist of only surveillance. 5 Romania is included since COMTRADE data currently reports for the EU-25 grouping.

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significant increase on imports6. In terms of bilateral agreed quotas it is only Belarus

that remains subject to restrictions7

Table 2: EU Quota Restrictions on Textiles and Clothing

.

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

United

States No quota restrictions

Switzerland No quota restrictions

Tunisia Surveillance No quota restrictions

Bangladesh Surveillance

Turkey Surveillance Quota

restrictions

No quota restrictions

Morocco Surveillance Quota restrictions and

surveillance No quota restrictions

Romania Quota

restrictions

Phasing out of quota restrictions

under ATC No quota restrictions

China Quota

restrictions

Phasing out of quota restrictions under ATC

Hong Kong Quota

restrictions


India Quota

restrictions


Indonesia Quota

restrictions


3. Patterns in EU clothing and textile imports

Given this array of trade arrangements there will now be consideration of the patterns,

in terms of market share, for the key exporters to the EU-27. Both intra-EU27 and

extra-EU27 exports to the EU-27 will be examined. The aim of this analysis is to

identify if there is any evidence that the relaxing of restrictions towards the extra-EU

countries or new members has led to trade creation. In other words has there been a 6 The products which the EU imports from China that had quota restrictions re-introduced were cotton fabrics, T-shirts, pullovers, men's trousers, blouses, bed linen, dresses, brassieres, table and kitchen linen, and flax or ramie yarn. 7 The republic of Korea, Montenegro and Kosovo are also subject to autonomous quotas.

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shift to the low cost producers, for example China, and away from the higher cost EU

producers due to the relaxing of quota restrictions. This argument was central to the

reintroduction of quotas towards China, and thereby interesting to investigate further.

Firstly, examining Table 3 that concerns textiles it is evident that the extra-EU27 have

a relatively small share of exports to the EU-27 compared to intra-EU27 exports

(Table 5). Considering Switzerland it is apparent that they experienced a gradually

declining share of exports to the EU-27. It would seem that they lost market share to

India, the US, Turkey and China as the 1990s progressed. In 2000 China moved from

being the fourth to the most dominant exporter to the EU-27. For the rest of the period

China expanded their share, with Turkey consistently retaining second place although

not experiencing such a considerable expansion of their share as China in 2005-6.

Also noteworthy is that by the end of the period the top ten remains populated by the

nine of the countries that were present in 1993.

Turning to Table 4, which considers intra-EU27 textile trade there is evidence of

considerable persistence in the shares of the countries concerned. Similar to Table 3,

at the end of the period the top ten remains populated by the nine countries that were

present in 1993. It is interesting that there is no significant indication in this table of a

loss of share of the top ten EU-27 to the extra-EU27. However this may suggest that

China gained at the expense of smaller exporters.

Looking now to clothing trade, Table 5 illustrates that China is consistently the most

important extra-EU27 exporter to the EU-27 where they experience a dramatic

increase in their share over 2005-6. Turkey overtook Hong Kong during the mid-90s

and maintain their dominant second position for the rest of the period, while

experiencing an upward trend in their share. It is noticeable that China pulls ahead of

all other competitors, including Turkey, from the late 1990s. Then concentrating on

Bangladesh, they see a consistent expansion of their share over the period. Overall it

can be seen that at the end of the period the top ten remains populated by nine of the

countries that were present in 1993. Also noteworthy is that the extra-EU are more

dominant in terms of clothing than textiles.

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Examining Table 6 the intra-EU27 have a smaller share of the EU-27 clothing market

than for textiles. Italy has been the most important intra-EU27 exporter for the entire

period, but did see a gradual decline in its share. This could be due to China’s share

expansion, but it is not particularly dramatic therefore their must be other countries

who also saw their share decline, such as small exporters. Turning to Germany it can

be noted that they retained second place and did not experience the same share

erosion as Italy. In an effort to explain this one may consider the type of clothing

exports. For example it is possible that Italy’s exports compete with those of China to

a greater extent. Focussing on Portugal it can be seen that they experience a decline in

their market share from the late 1990s. Whereas Romania consistently gain market

share until 2003. The UK see themselves marginalised from the late 1990s.

Overall it is the case that there is less persistence and more new entrants among the

intra-EU25 clothing trade. It is noteworthy that there are no dramatic changes in the

either the share of the top 10 intra-EU exporters or the share of all the intra-EU27

exporters. There is a gradual decline in both the share the top 10 receive and all of the

EU-27, but it is the smaller exporters who are squeezed out of the market to a larger

extent. This naturally leads to the question as to whether competition with China is

overstated.

In conclusion, the important players in the clothing and textile market see

considerable persistence in their market shares. There is little evidence that the

changing restrictions has led to new entrants in these markets. It is true that China, in

terms of both textiles and clothing, has experienced an expansion of their market

share. However it is not clear that the major EU27 producers have seen a sudden

contraction of their export share. In fact it is more apparent that it has been the small

EU-27 exporters who lose out. There is evidence of a gradual decline in the share of

the EU-27 suggestive of trade creation. However it is difficult to support the assertion

of the sudden negative impact on the EU-27 of the changing restrictions in favour of

exporters such as China.

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Table 3: Top 10 extra-EU textile exporters to the EU-27 market, share of EU-27 imports of textiles from the world

1993 1994 1995 1996 1997

1 Switzerland 3.7 Switzerland 3.5 Switzerland 3.2 India 3.3 India 3.5

2 India 3.1 India 3.1 India 3.2 United States 3 United States 3.3

3 United States 3 United States 2.8 United States 2.8 Switzerland 2.8 Turkey 3

4 China 2.8 China 2.7 China 2.4 Turkey 2.6 China 2.6

5 Turkey 2 Turkey 2.2 Turkey 2.4 China 2.4 Switzerland 2.4

6 Pakistan 2 Pakistan 1.9 Pakistan 1.8 Pakistan 1.9 Pakistan 1.9

7 Japan 1.7 Indonesia 1.5 Indonesia 1.4 Indonesia 1.4 Korea, Rep. 1.6

8 Indonesia 1.5 Japan 1.5 Japan 1.4 Korea, Rep. 1.2 Indonesia 1.4

9 Iran, Islamic Rep. 1.2 Iran, Islamic Rep. 1.2 Korea, Rep. 1.2 Japan 1.2 Japan 1.3

10 Korea, Rep. 1.1 Korea, Rep. 1.2 Iran, Islamic Rep. 1 Taiwan, China 0.9 Taiwan, China 1.2

Extra-EU 30.1 29.8 28.9 28.9 30.1

1998 1999 2000 2001 2002

1 India 3.4 Turkey 3.7 China 3.9 Turkey 4.3 China 4.7

2 Turkey 3.3 India 3.4 Turkey 3.9 China 4.1 Turkey 4.4

3 United States 3.2 United States 3 India 3.7 India 3.8 India 3.5

4 China 2.7 China 2.9 United States 3 United States 2.8 United States 2.4

5 Switzerland 2.5 Switzerland 2.4 Switzerland 2.3 Switzerland 2.2 Pakistan 2.3

6 Pakistan 1.9 Pakistan 1.9 Korea, Rep. 2 Pakistan 2.1 Switzerland 2

7 Korea, Rep. 1.8 Korea, Rep. 1.8 Pakistan 2 Korea, Rep. 1.9 Korea, Rep. 1.8

8 Japan 1.4 Japan 1.5 Japan 1.4 Japan 1.3 Japan 1.2

9 Taiwan, China 1.4 Taiwan, China 1.4 Taiwan, China 1.3 Indonesia 1.2 Indonesia 1.1

10 Indonesia 1.4 Indonesia 1.2 Indonesia 1.2 Taiwan, China 1.1 Taiwan, China 1

Extra-EU 30.6 30.5 32.5 31.6 31.3

2003 2004 2005 2006

1 China 5.5 China 6.5 China 8.3 China 9.5

2 Turkey 5 Turkey 5.3 Turkey 5.6 Turkey 5.9

3 India 3.6 India 3.9 India 4.1 India 4.2

4 Pakistan 2.6 Pakistan 2.8 Pakistan 2.5 Pakistan 2.7

5 United States 2 Switzerland 1.9 United States 1.9 United States 2

6 Switzerland 2 United States 1.8 Switzerland 1.8 Switzerland 1.7

7 Korea, Rep. 1.6 Korea, Rep. 1.5 Korea, Rep. 1.4 Korea, Rep. 1.2

8 Japan 1 Japan 0.9 Japan 0.9 Japan 0.9

9 Indonesia 0.9 Indonesia 0.8 Taiwan, China 0.8 Indonesia 0.8

10 Taiwan, China 0.9 Taiwan, China 0.8 Indonesia 0.7 Taiwan, China 0.7

Extra-EU 31.8 33.1 34.7 36.2

Source: United Nations Commodity Trade Statistics Database Notes: 1/ Where the partner is indicated to be a “Special Category” this suggests that the reporter country does not want the partner to be disclosed.

2/ Where the partner is indicated to be an “Unspecified” country this may be due to a low trade value, that the partner country was unknown to the reporter or alternatively that an error was made in the partner assignment.

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Table 4: Top 10 extra-EU clothing exporters to the EU-27 market, share of EU-27 imports of clothes from the world 1993 1994 1995 1996 1997

1 China 8.4 China 9 China 7.7 China 8.2 China 8.8

2 Hong Kong, China 7.3 Hong Kong, China 6.4 Turkey 6.6 Turkey 6.4 Turkey 6.4

3 Turkey 6.1 Turkey 5.9 Hong Kong, China 6.1 Hong Kong, China 5.8 Hong Kong, China 5.7

4 India 3.2 India 3.6 India 3.8 India 3.5 Tunisia 3.2

5 Tunisia 2.8 Tunisia 3 Tunisia 3.3 Tunisia 3.4 India 3

6 Morocco 2.7 Morocco 2.9 Morocco 3.1 Morocco 3 Morocco 2.9

7 Indonesia 2.1 Indonesia 2 Bangladesh 1.9 Bangladesh 2 Bangladesh 2.2

8 Korea, Rep. 1.8 Bangladesh 1.5 Indonesia 1.9 Indonesia 1.8 Indonesia 2.1

9 Thailand 1.6 Thailand 1.4 Thailand 1.2 United States 1.2 Thailand 1.2

10 Bangladesh 1.3 Pakistan 1.3 Pakistan 1.2 Thailand 1.2 United States 1.2

Extra-EU27 51.9 51.3 50.5 50.5 51.4

1998 1999 2000 2001 2002

1 China 8.7 China 9.8 China 11.9 China 12.3 China 13.5

2 Turkey 7 Turkey 6.9 Turkey 7.2 Turkey 7.5 Turkey 8.6

3 Hong Kong, China 5.7 Hong Kong, China 5.8 Hong Kong, China 4.4 Tunisia 3.6 Tunisia 3.6

4 Tunisia 3.5 Tunisia 3.5 Tunisia 3.4 Hong Kong, China 3.6 India 3.3

5 Morocco 3.1 Morocco 3 Bangladesh 3.3 Bangladesh 3.4 Bangladesh 3.3

6 India 2.9 India 3 India 3.3 India 3.3 Hong Kong, China 3.3

7 Bangladesh 2.4 Bangladesh 2.5 Morocco 3 Morocco 3.2 Morocco 3.2

8 Indonesia 2.1 Indonesia 2.1 Indonesia 2.5 Indonesia 2.4 Indonesia 2

9 Thailand 1.3 Thailand 1.4 Thailand 1.5 Thailand 1.4 Thailand 1.4

10 Pakistan 1.1 Korea, Rep. 1.1 Korea, Rep. 1.2 Pakistan 1.2 Pakistan 1.2

Extra-EU27 52.1 53.8 56.8 56.0 56.2

2003 2004 2005 2006

1 China 14.7 China 16.1 China 21.6 China 22.4

2 Turkey 9.1 Turkey 9.2 Turkey 9 Turkey 8.5

3 Bangladesh 3.9 Bangladesh 4.5 India 4.1 Bangladesh 4.8

4 India 3.4 India 3.4 Bangladesh 4 India 4.4

5 Tunisia 3.4 Tunisia 3 Tunisia 2.7 Hong Kong, China 2.9

6 Morocco 3.1 Morocco 2.9 Morocco 2.6 Tunisia 2.5

7 Hong Kong, China 3.1 Hong Kong, China 2.7 Hong Kong, China 2.3 Morocco 2.5

8 Indonesia 1.8 Indonesia 1.8 Indonesia 1.5 Indonesia 1.6

9 Thailand 1.4 Thailand 1.4 Thailand 1.2 Thailand 1.2

10 Pakistan 1.3 Pakistan 1.3 Pakistan 1.1 Pakistan 1.2

Extra-EU27 57.1 58.5 60.6 62.8



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Table 5: Top 10 intra-EU textile exporters, share of EU-27 imports of textiles from the world 1993 1994 1995 1996 1997

1 Germany 16.5 Germany 15.8 Germany 16.2 Germany 15.5 Germany 14.6

2 Italy 12.8 Italy 12.7 Italy 12.8 Italy 12.9 Italy 12.9

3 Belgium-Luxembourg 9 Belgium-Luxembourg 9.2 Belgium-Luxembourg 8.9 Belgium-Luxembourg 8.7 Belgium-Luxembourg 8.2

4 France 7.4 France 7.7 France 7.7 France 7.7 France 7.6

5 Netherlands 5.6 Netherlands 5.4 Netherlands 5.7 Netherlands 5.7 United Kingdom 5.7

6 United Kingdom 4.8 United Kingdom 4.9 United Kingdom 5 United Kingdom 5 Netherlands 5.2

7 Austria 3 Austria 2.7 Spain 2.9 Spain 3.1 Spain 3.3

8 Spain 2 Spain 2.6 Austria 2.2 Austria 2.3 Austria 2.2

9 Portugal 1.8 Portugal 2 Portugal 2 Portugal 2.1 Portugal 2

10 Greece 1.1 Czech Republic 1.2 Czech Republic 1.3 Czech Republic 1.3 Czech Republic 1.4 EU-27 69.7 69.8 70.7 70.6 69.4

1998 1999 2000 2001 2002

1 Germany 14.4 Germany 14.1 Germany 13.6 Italy 13.3 Italy 13.2

2 Italy 13.1 Italy 13.3 Italy 12.9 Germany 13.3 Germany 13.1

3 Belgium-Luxembourg 7.9 Belgium 7.7 France 7.2 Belgium 7.3 Belgium 7.2

4 France 7.7 France 7.5 Belgium 7.2 France 7 France 7.1

5 Netherlands 5.2 Netherlands 5.1 Netherlands 4.9 Netherlands 5 Netherlands 5.1

6 United Kingdom 4.8 United Kingdom 4.8 United Kingdom 4.4 United Kingdom 4.3 United Kingdom 4.1

7 Spain 3.5 Spain 3.6 Spain 3.6 Spain 3.7 Spain 3.8

8 Austria 2.3 Austria 2.3 Austria 2.1 Czech Republic 2.2 Czech Republic 2.3

9 Portugal 2.1 Portugal 2.1 Portugal 2 Austria 2.1 Portugal 2.2

10 Czech Republic 1.5 Czech Republic 1.6 Czech Republic 1.9 Portugal 2.1 Austria 2.1 EU-27 68.8 68.6 66.6 67.3 67.5

2003 2004 2005 2006

1 Germany 13.2 Germany 13.4 Germany 13 Germany 12.8

2 Italy 12.9 Italy 12.2 Italy 12 Italy 11.7

3 Belgium 7 Belgium 7.2 Belgium 7 Belgium 6.9

4 France 6.9 France 6.5 France 6.1 France 5.7

5 Netherlands 4.9 Netherlands 4.8 Netherlands 4.9 Netherlands 4.8

6 United Kingdom 3.8 United Kingdom 4.1 United Kingdom 3.9 United Kingdom 3.7

7 Spain 3.8 Spain 3.6 Spain 3.4 Spain 3.1

8 Czech Republic 2.5 Czech Republic 2.2 Czech Republic 2.1 Czech Republic 2.2

9 Portugal 2.2 Portugal 2.1 Austria 2 Austria 2

10 Austria 2 Austria 1.9 Portugal 2 Portugal 1.8 EU-27 67.0 65.7 64.2 62.7



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Table 6: Top intra-EU clothing exporters, share of EU-27 imports of clothing from the world 1993 1994 1995 1996 1997

1 Italy 11 Italy 10.9 Italy 10.6 Italy 10.6 Italy 9.7


3 France 4.2 Portugal 4.5 Portugal 4.4 Portugal 4.3 France 4

4 Portugal 4 France 4.1 France 4 France 3.8 Portugal 4

5 United Kingdom 3.3 United Kingdom 3.5 United Kingdom 3.5 United Kingdom 3.8 United Kingdom 3.8

6 Greece 2.6 Poland 2.9 Poland 3.1 Poland 3 Netherlands 2.9

7 Netherlands 2.6 Netherlands 2.6 Netherlands 2.6 Netherlands 2.8 Poland 2.6

8 Poland 2.6 Belgium-Luxembourg 2.2 Belgium-Luxembourg 2.2 Belgium-Luxembourg 2.3 Romania 2.3

9 Belgium-Luxembourg 2.1 Greece 2.1 Greece 1.9 Romania 2.1 Belgium-Luxembourg 2.3

10 Hungary 1.4 Romania 1.6 Romania 1.9 Greece 1.8 Greece 1.7

Intra-EU27 48.1 48.7 49.5 49.5 48.6

1998 1999 2000 2001 2002

1 Italy 9.3 Italy 8.7 Italy 7.8 Italy 8.1 Italy 7.9


3 Portugal 3.7 France 3.8 France 3.7 Romania 4.1 Romania 4.5

4 France 3.7 Portugal 3.4 Romania 3.4 France 3.6 France 3.8

5 Netherlands 3.4 Netherlands 3.1 Portugal 3 Portugal 3 Portugal 2.9

6 United Kingdom 3.3 Romania 3.1 Netherlands 2.6 Netherlands 2.6 Netherlands 2.5

7 Poland 2.9 United Kingdom 2.9 United Kingdom 2.5 Poland 2.5 Belgium 2.5

8 Romania 2.8 Poland 2.7 Poland 2.5 Belgium 2.4 Poland 2.2

9 Belgium-Luxembourg 2.4 Belgium 2.5 Belgium 2.3 United Kingdom 2.2 United Kingdom 2

10 Hungary 1.6 Spain 1.5 Spain 1.6 Spain 1.6 Spain 1.9

Intra-EU27 47.9 46.1 43.1 43.9 43.7

2003 2004 2005 2006

1 Italy 7.7 Italy 7.2 Italy 6.9 Italy 6.4

2 Germany 4.8 Germany 5.2 Germany 5 Germany 4.9

3 Romania 4.6 Romania 4.5 Romania 3.9 France 3.7

4 France 3.7 France 3.8 France 3.8 Romania 3.5

5 Portugal 2.8 Portugal 2.5 Belgium 2.4 Spain 2.3

6 Netherlands 2.4 Belgium 2.4 Netherlands 2.4 Netherlands 2.2

7 Belgium 2.4 Netherlands 2.3 Portugal 2.2 Belgium 2.2

8 Spain 2 Spain 2.2 Spain 2.2 Portugal 2

9 Poland 1.9 United Kingdom 2 United Kingdom 1.9 United Kingdom 1.9

10 United Kingdom 1.9 Poland 1.5 Bulgaria 1.3 Bulgaria 1.3

Intra-EU27 42.8 41.4 39.3 37.2

Source: United Nations Commodity Trade Statistics Database Notes: 1/ Where the partner is indicated to be a ÒSpecial CategoryÓ this suggests that the reporter country does not want the partner to be disclosed.

2/ Where the partner is indicated to be an ÒUnspecifiedÓ country this may be due to a low trad e value, that the partner country was unknown t the reporter or alternatively that an error was made in the partner assignment.

4. Coverage and Utilisation of Quotas

The purpose of this section of the analysis is several fold. Firstly there is an aim to

identify if there was a distinctive change in utilisation rates over time. Also, when

considering the pattern of quotas there is a need to examine if there is evidence of

areas for concern upon removal. Thirdly, given the unique position of China with the

temporary re-introduction of quotas, there needs to be an assessment of whether there

is any evidence to justify this move.

Working quota levels, amounts licensed and working quota utilisation rates are all

available from the Système Intégré de Gestion de Licenses. Working levels are the

quantitative limits adjusted following the use of flexibility provisions provided for

under the relevant legal texts. The working quota utilisation rates, where restrictions

are present, are shown full in Table A 1 by exporting country and EU product

category. A description of the categories is given in Table A 2.

In addition there is a summary of these rates provided in Table 7. Quota utilisation

rates can be examined in order to establish whether restrictions are in fact binding.

Faini, de Melo and Takacs (1995) suggest that rates above 80 per cent could be

considered as a rough cut-off for full quota utilisation, thus explaining range used in

Table 7.

Considering Morocco, Poland and Romania in Table 7 there is a gradual decline in

the number of categories covered, and little evidence that these were binding. On the

other hand China faces consistently the largest number of binding quotas. The number

of restrictions that remain present on categories of products where quotas are not

binding declines over the period, whereas the number of categories subject to binding

restrictions remains high until 2004. In comparison Hong Kong have a large number

of restrictions on products but the majority of quotas are less than 50% utilised

throughout the whole period. In terms of India it can be noted that the total number of

categories restricted is less than that for China and Hong Kong. However for India the

majority of these categories have binding restrictions throughout the period. Indonesia

has a lower number of restrictions than China, Hong Kong or India, and overall a

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more mixed experience. Although the number of categories facing restrictions

remains fairly stable over the period, a generally declining number appear binding.

Lastly Turkey was only restricted in 1995. Out of the eleven categories where quotas

were imposed on Turkish exports to the EU market seven were fully utilised.

Therefore, where present, quotas do appear to have been binding in the majority of

cases confirming that Turkish products are competitive in the EU market (GATT,

1994). It is noteworthy that Turkish products are not as competitive in the US market,

resulting in the quotas been left unfilled in the majority of categories (U.S. Customs

and Border Protection).

It is worth focusing some attention on the actual quota utilisation rates contained in

Table A 1. Considering the Chinese data an interesting story presents itself, and one

that is hidden in the summary presented in Table 7. The data suggests that there were

categories that until 2004 were not facing quotas, but over 2005-7 when restrictions

were temporarily re-introduced, these categories began to newly experience quotas.

This suggests that the EU changed the method of determining the categories subject to

quotas. It would be fair to say that these quotas that were re-introduced were largely

binding, although generally less so over the three years. However it was earlier

highlighted that India also experiences the majority of categories being subject to

binding restrictions in 2004. Therefore the question naturally arises that since the EU

argued the case for re-introducing quota restrictions towards China why was this not

so for India. There was a view that India would be in danger of losing out to China in

the wake of restrictions being lifted, Balaubramanyam and Wei (2005), given the

similarity of textile and clothing products that were being exported and the lower

labour costs experienced by Chinese producers. However the consideration of market

shares for India in Table 3 and Table 4 does not show, ex-post, this to have been true

to date.

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Table 7: Summary of EU Quota Utilisation Rates for Selected Exporters

# of Categories where Quota Utilisation Rates are… Total # of Restricted Categories < 50% > 50% and < 80% >80% Turkey 1995 1 3 7 11

Morocco 1995 0 0 0 0 1996 0 1 0 1 1997 0 1 0 1

Poland

1993 13 4 0 17 1994 12 5 0 17 1995 12 2 1 15 1996 8 4 0 12 1997 7 2 3 12

Romania

1993 19 2 0 21 1994 12 3 0 15 1995 11 2 2 15 1996 10 2 2 14 1997 7 3 3 13

China

1993 7 9 17 33 1994 9 9 20 38 1995 8 13 18 39 1996 8 9 23 40 1997 7 6 26 39 1998 6 8 25 39 1999 8 3 28 39 2000 3 5 31 39 2001 0 6 28 34 2002 4 3 20 27 2003 3 3 21 27 2004 3 5 19 27 2005 1 0 10 11 2006 0 1 10 11 2007 0 2 9 11

Hong Kong

1993 17 4 9 30 1994 18 3 8 29 1995 19 4 6 29 1996 17 7 6 30 1997 17 9 4 30 1998 15 8 3 26 1999 15 6 5 26 2000 15 3 8 26 2001 17 5 4 26 2002 9 2 7 18 2003 9 3 6 18 2004 10 4 4 18

India

1993 4 1 11 16 1994 4 0 14 18 1995 1 3 14 18 1996 3 2 13 18 1997 2 3 1 6 1998 3 4 11 18 1999 2 5 11 18 2000 1 6 11 18 2001 3 5 10 18 2002 4 2 10 16 2003 5 3 8 16 2004 5 2 9 16

Indonesia

1993 0 2 9 11 1994 1 2 11 14 1995 1 7 5 13 1996 2 4 7 13 1997 2 5 7 14 1998 2 3 9 14 1999 3 2 9 14 2000 4 5 5 14 2001 4 5 5 14 2002 1 5 6 12 2003 3 6 3 12 2004 3 6 3 12

Source: Système Intégré de Gestion de Licenses

15

5. Conclusions

In this paper it has been found that there is considerable persistence in the market

shares for the major players, including EU members, supplying clothing and textiles

to the EU market. In fact it is the small exporters who have lost out from the Chinese

share expansion. The ex-post findings from the analysis in this paper are at odds with

predictions of the previous CGE studies, which are generally suggestive of a much

larger and sudden expansion of Chinese market share at the expense of the large EU

producers. There is a range of possible reasons. One interesting explanation discussed

by Mayer (2005) is that mainland China was channelling its exports through Hong

Kong, Taiwan and Macao. Therefore, where present, quotas would in fact potentially

not be binding and thus not restricting Chinese market share. Considering the findings

from Section 4, where the quotas towards Hong Kong were largely unfilled this does

add support to the potential for channelling to have taken place.

Also contrary to the ex-ante predictions, India has not experienced a contraction in its

market share. When comparing the quota utilisation of China and India in 2004 it is

interesting that the EU did not re-introduce quotas towards India and well as China. In

addition it is interesting to note that when the patterns of Chinese categories subject to

quotas was examined there were products that were quota free until 2005 at which

point they suddenly had quotas introduced.

In conclusion the ex-post evidence presented in this paper lends much weaker support

towards the temporary re-introduction of Chinese quotas than that of previous studies.

Evidence has been presented that the major clothing and textile producers supplying

to the EU market have significant persistence in their shares. Whereas it is the small

exporters who should be concerned by the Chinese share expansion, albeit more

moderate than predicted.

16

References

Balaubramanyam, V N and Y Wei. 2005 “Textiles and Clothing Exports from India

and China: A Comparative Analysis” Journal of Chinese Economic and Business

Studies, 3:1, pp. 23-27.

Curran, L. 2006. “The End of the MFA – Globalisation Giveth and Globalisation

Taketh Away” European Study Group Conference.

European Communities. Système Intégré de Gestion de Licenses

Faini, R, J de Melo, and W Takacs. 1995. "A Primer on the MFA Maze." The World

Economy, 18:1, pp. 113-35.

GATT. 1994. Trade Policy Review: The Republic of Turkey.

Mayer, J. 005 “Not Totally Naked: Textiles and Clothing Trade in a Quota-free

Environment” Journal of World Trade, 39:3, pp. 393-426.

Nordas, H. 2004. “The Global Textile and Clothing Industry post the Agreement on

Textiles and Clothing” WTO Discussion Paper, No 5.

U.S. Customs and Border Protection. Archived Year-end Textile Status Reports for

Absolute Quotas.

UNCTAD. Commodity Trade Statistics Database

World Trade Organization. 1995. Trade Policy Review: European Union


World Trade Organization. 1998. Trade Policy Review: Turkey

17



World Trade Organization. 2003. Trade Policy Review: Turkey.

World Trade Organization. 2004. Trade Policy Review: European Communities

World Trade Organization. 2006. Trade Policy Review: China.

World Trade Organization. 2007. Trade Policy Review: European Communities

Yeung, G and V Mok. 2004 “Does WTO Accession Matter for the Chinese Textile

and Clothing Industry?” Cambridge Journal of Economics, 28:6, pp. 937-954.

18

Appendix

Table A 1 : EU Quota Utilisation Rates Turkey Morocco Poland Romania Category 1995 1995 1996 1997 1993 1994 1995 1996 1997 1993 1994 1995 1996 1997 1 22.31 NR NR NR NR NR NR NR NR S S S NR NR 2 70.39 NR NR NR 23.35 29.62 28.63 20.96 17.81 13.66 45.11 33.87 29.3 40.01 2A S NR NR NR 32.93 31.45 27.81 18.79 19.23 8.43 52.89 30.51 26.07 36.9 3 S NR NR NR 14.97 14 10.98 9.87 9.05 8.94 11.93 11.45 8.62 3.74 3A S NR NR NR NR NR NR NR NR NR NR NR NR NR 4 90.63 NR NR NR 24.04 33.56 34.47 32.4 36 28.15 28.47 46.08 41.98 55.9 5 S NR NR NR 64.25 61.99 60.36 75.64 80.93 77.11 54.54 63.03 84.47 82.2 6 86.61 S 71.89 61.11 52.46 57.43 82.94 74.2 81.15 47.18 39.59 50.04 53.38 71.84 7 99.41 S S S NR NR NR NR NR 23.72 51.47 90.63 99 90.27 8 81.72 S S S 23.88 18.11 24.69 29.84 56.47 50.04 32.1 45.5 46.77 58.83 9 S NR NR NR 57.51 60.2 51.82 42.67 49.95 NR NR NR NR NR 10 NR NR NR NR NR NR NR NR NR NR NR NR NR NR 12 98.27 NR NR NR 27.93 26.57 10.47 NR NR 31.89 32.83 41.03 34.76 44.04 13 93.03 NR NR NR NR NR NR NR NR 15.84 S S NR NR 14 NR NR NR NR 5.58 9.63 11.17 NR NR 24.86 16.18 20.71 17.07 37.69 15 NR NR NR NR 32.01 45.12 52.35 66.89 69.75 39.85 46.38 81.45 69.62 82.85 16 NR NR NR NR 8.52 11.74 16.01 NR NR 18.01 S S NR NR 17 NR NR NR NR NR NR NR NR NR 45.87 37.85 45.16 45.63 77.67 18 77.64 NR NR NR NR NR NR NR NR NR NR NR NR NR 19 NR NR NR NR NR NR NR NR NR NR NR NR NR NR 21 S NR NR NR NR NR NR NR NR NR NR NR NR NR 22 S NR NR NR NR NR NR NR NR NR NR NR NR NR 23 S NR NR NR NR NR NR NR NR NR NR NR NR NR 24 S NR NR NR 19.99 13.85 14.71 NR NR 17.06 13.79 13.04 9.04 11.68 26 65.26 S S S 11.82 19.16 34.16 37.14 33.26 27.24 S S NR NR 27 S NR NR NR NR NR NR NR NR NR NR NR NR NR 28 S NR NR NR NR NR NR NR NR NR NR NR NR NR 29 S NR NR NR NR NR NR NR NR NR NR NR NR NR 31 NR NR NR NR NR NR NR NR NR NR NR NR NR NR 32 S NR NR NR NR NR NR NR NR NR NR NR NR NR 33 S NR NR NR NR NR NR NR NR NR NR NR NR NR 35 NR NR NR NR NR NR NR NR NR NR NR NR NR NR 37 NR NR NR NR NR NR NR NR NR S S S NR NR 37 A NR NR NR NR NR NR NR NR NR NR NR NR NR NR 39 S NR NR NR NR NR NR NR NR NR NR NR NR NR 61 NR NR NR NR NR NR NR NR NR NR NR NR NR NR 68 NR NR NR NR NR NR NR NR NR 12.18 S S NR NR 72 NR NR NR NR NR NR NR NR NR NR NR NR NR NR 73 S NR NR NR NR NR NR NR NR 8.73 3.97 10.16 NR NR 74 S NR NR NR NR NR NR NR NR NR NR NR NR NR 76 NR NR NR NR NR NR NR NR NR NR NR NR NR NR 77 NR NR NR NR NR NR NR NR NR NR NR NR NR NR 78 NR NR NR NR NR NR NR NR NR 36.55 S S NR NR 83 95.54 NR NR NR NR NR NR NR NR NR NR NR NR NR 90 NR NR NR NR 72.77 63.91 46.72 67.1 94.41 NR NR NR NR NR 97 NR NR NR NR NR NR NR NR NR NR NR NR NR NR 117 NR NR NR NR 22.12 60.66 38.92 19.1 28.74 0.02 S S NR NR 118 NR NR NR NR 11.91 9.37 10.13 NR NR 18.94 25.34 31.56 18.52 11.71 163 NR NR NR NR NR NR NR NR NR NR NR NR NR NR

19

China

Category

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

1 71.91 96.35 56.11 17.83 23.07 12.61 5.63 0.16 1.25 3.15 8.5 28.56 NR NR NR 2 99.91 98.62 99.97 79.57 94.45 91.1 99.91 99.62 94.72 99.84 97.26 96.41 92.35 84.11 77.90

2A 46.52 53.74 68.99 63.8 60.51 71.01 99.99 97 99.97 98.37 99.96 85.38 NR NR NR 3 89.34 92.18 99.85 99.78 94.94 84.83 99 96.51 87.02 99.28 99.98 84.49 NR NR NR

3A 100 86.17 99.82 98.67 82.31 90.21 97.49 93.15 86.54 97.37 100 59.09 NR NR NR 4 99.07 98.78 99.36 99.55 99.84 99.3 99.92 99.43 99.43 99.58 99.93 96.93 100.23 83.13 85.55

4C NR NR NR NR NR NR NR NR NR NR NR NR 8.76 82.18 99.31 5 99.52 99.95 99.58 99.94 99.83 99.36 99.92 99.68 99.58 99.64 99.79 99.15 156.39 99.3 97.97 6 99.2 96.09 99.58 99.74 99.96 99.55 99.93 99.6 99.47 99.45 99.9 97.27 107.26 99.17 94.51 7 99.12 98.26 99.27 99.73 99.73 98.65 99.89 99.55 99.44 99.24 99.42 96.16 99.33 99.12 96.54 8 99.07 96.41 98.87 99.61 99.84 99.64 99.86 99.45 99.56 99.81 99.64 93.61 NR NR NR 9 88.57 68.45 56.29 56.8 59.91 65.57 95.28 99.92 99.94 99.15 99.97 92.36 NR NR NR 10 60.48 68.72 74.49 84.62 98.5 99.65 99.89 99.93 81.75 NR NR NR NR NR NR 12 94.23 82.31 68.59 97.77 97.79 99.58 99.48 90.81 95.46 98.6 94.77 50.37 NR NR NR 13 88.9 83.53 99.7 99.77 98.29 99.4 99.65 99.74 99.29 98.78 99.9 98.39 NR NR NR 14 NR 46.48 77.5 96.12 99.92 86.49 99.71 98.92 91.02 47.51 59.8 51.45 NR NR NR 15 78.08 69.69 64.91 97.95 99.78 98.65 99.91 99.64 99.4 98.89 99.72 96.14 NR NR NR 16 30.68 26.63 24.63 21.35 25.37 32.28 48.96 85.35 83.83 90.77 99.92 85.55 NR NR NR 17 NR 89.49 6.78 36.78 87.57 85.53 65.72 85.38 83.03 31.87 42.9 38.94 NR NR NR 18 96.77 87.01 93.82 99.55 99.56 99.28 99.77 99.83 81.9 NR NR NR NR NR NR 19 91.07 84.29 99.75 93.31 65.72 71.83 77.26 60.44 62.06 NR NR NR NR NR NR 20 NR NR NR NR NR NR NR NR NR NR NR NR 97.98 80.03 85.81 21 96.59 95.59 99.68 99.85 99.76 89.77 97.55 99.65 92.63 NR NR NR NR NR NR 22 20.11 38.78 42.53 44.57 40.51 56.69 49.01 46.68 42.63 50.18 57.63 50.95 NR NR NR 23 32.19 24.41 12.89 2.68 5.23 0.64 0.79 0.06 1.6 1.05 0.59 0.4 NR NR NR 24 77.6 69.82 77.45 87.41 80.92 77.97 95.69 99.93 79.42 NR NR NR NR NR NR 26 61.88 61.24 99.76 98.86 87.04 99.18 99.65 96.5 98.9 98.38 99.88 90.66 98.23 98.96 95.06 27 NR NR NR NR NR NR NR NR NR NR NR NR NR NR NR 28 NR 55.44 61.34 85.01 99.89 99.6 99.93 99.02 76.43 75.61 99.71 93.9 NR NR NR 29 NR NR 59.56 51.78 69.19 61.29 94.65 99.85 99.6 99.59 99.83 97.69 NR NR NR 31 99.69 99.27 99.98 98.55 96.95 99.32 99.98 99.88 99.57 99.78 99.89 98.66 100.63 92.16 91.97 32 31.64 41.72 66.25 21.28 55.43 59.9 39.3 60.31 87.79 NR NR NR NR NR NR 33 34.13 36.56 27.47 61.18 31.15 30.83 41.64 53.84 41.65 NR NR NR NR NR NR 35 NR NR NR NR NR NR NR NR NR NR NR NR NR NR NR 37 60.37 97.44 71.85 71.71 63.76 43.19 35.97 70.05 38.12 NR NR NR NR NR NR

37 A 8.63 8.35 8.67 13.57 11.92 9.18 25.32 99.05 61.14 NR NR NR NR NR NR 39 NR NR NR NR NR NR NR NR NR NR NR NR 89.17 58.98 63.82 61 NR NR NR NR NR NR NR NR NR NR NR NR NR NR NR 68 NR 67.9 63.8 77.51 92.47 95.43 99.93 99.81 88.17 NR NR NR NR NR NR 72 NR NR NR NR NR NR NR NR NR NR NR NR NR NR NR 73 79.99 98.64 100 99.95 99.89 91.36 99.7 99.75 81.87 NR NR NR NR NR NR 74 NR NR NR NR NR NR NR NR NR NR NR NR NR NR NR 76 73.86 76.67 97.34 99.71 99.89 99.8 99.34 98.66 77.26 NR NR NR NR NR NR 77 NR NR NR NR NR NR NR NR NR NR NR NR NR NR NR 78 87.11 86.88 99.63 99.8 99.55 98.92 99.81 98 98.96 99.46 99.73 82.43 NR NR NR 83 54.09 45.11 42.65 70.03 92.36 99.28 99.66 94.52 99.2 98.61 99.68 93.2 NR NR NR 90 NR NR NR NR NR NR NR NR NR NR NR NR NR NR NR 97 NR 28.38 32.37 39.06 49.31 70.95 76.79 74.83 68.91 67.63 75.28 73.9 NR NR NR

115 NR NR NR NR NR NR NR NR NR NR NR NR 101.62 100 93.94 117 NR NR NR NR NR NR NR NR NR NR NR NR NR NR NR 118 NR NR NR NR NR NR NR NR NR NR NR NR NR NR NR 163 96.8 91.65 93.3 99.3 99.74 99.92 100 95.03 100 99.98 99.9 82.42 NR NR NR

20

Hong Kong Category 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

1 NR NR NR NR NR NR NR NR NR NR NR NR 2 26.57 15.36 14.87 17.43 18.93 15.37 17.7 17.88 18.11 17.67 19.07 10.32

2A 25.76 17.09 14.02 15.94 16.71 15 16.82 17.8 19.07 18.92 21.9 11.77 3 2.14 0.39 0.19 0.11 0.06 0.02 0.03 0 0 0 0 0

3A 3.02 0.56 0.2 0.13 0.1 0.03 0.02 0 0 0 0 0 4 90.16 99.99 72.99 73.81 64.68 66.47 99.63 99.69 64.2 85.84 96.08 80.22 5 98.26 99.97 99.85 99.91 99.95 99.29 99.86 99.68 99.7 99.69 99.67 99.46 6 96.22 99.01 96.45 98.2 99.91 99.45 99.59 98.01 93.02 91.16 92.68 81.18 7 98.7 99.96 93.02 95.07 95.58 87.84 87.36 83.41 72.45 87 74.46 62.32 8 98.41 99.7 86.24 78.17 67.48 60.2 63.83 56.26 50.44 52.92 53.29 35.64 9 NR NR NR NR NR NR NR NR NR NR NR NR 10 50.71 57.69 61.71 57.33 56.35 56.69 48.77 38.13 30.2 NR NR NR 12 14.08 17.19 23.96 23.67 31.26 27.68 11.24 6.61 4.28 4.96 6.49 1.82 13 98.76 84.1 42.18 55.22 67.33 58.49 66.6 99.67 84.46 99.5 99.01 57.99 14 NR NR NR NR NR NR NR NR NR NR NR NR 15 NR NR NR NR NR NR NR NR NR NR NR NR 16 11.37 8.03 2.76 1.76 1.08 0.48 0.59 0.82 0.01 0.22 3.03 0.02 17 NR NR NR NR NR NR NR NR NR NR NR NR 18 27.62 20.67 16.92 10.28 8.35 6.82 9.76 12.43 5.18 NR NR NR 19 NR NR NR NR NR NR NR NR NR NR NR NR 21 95.64 99.99 99.99 99.08 91.74 73.87 77.55 87.32 68.44 NR NR NR 22 NR NR NR NR NR NR NR NR NR NR NR NR 23 NR NR NR NR NR NR NR NR NR NR NR NR 24 67.9 26.08 18.38 8.93 3.66 1.1 0.82 1.35 0.56 NR NR NR 26 62.74 60.52 76.71 94.04 70.3 66.6 78.98 80.64 45.78 54.13 52.41 52.76 27 37.22 38.4 49.42 36.46 23.92 16.61 14.53 12.4 4.54 NR NR NR 28 NR NR NR NR NR NR NR NR NR NR NR NR 29 16.93 12.67 9.17 6.69 2.99 1.07 2.29 3.83 4.42 14.44 35.61 9.49 31 82.97 73.84 82.43 81.41 58.56 52.77 75.6 88.43 84.06 96.71 97.6 83.32 32 8.73 5.31 2.25 2.42 3.38 3.57 4.55 4.35 13.77 NR NR NR 33 NR NR NR NR NR NR NR NR NR NR NR NR 35 NR NR NR NR NR NR NR NR NR NR NR NR 37 NR NR NR NR NR NR NR NR NR NR NR NR

37 A NR NR NR NR NR NR NR NR NR NR NR NR 39 18.74 5.92 1.32 0.1 0.03 0.02 0 0.54 0.16 0.01 0 0 61 1.14 2.9 2.45 0.13 0.31 NR NR NR NR NR NR NR 68 46.93 55.21 50.69 42.27 25.8 22.56 29.79 41.09 24.84 NR NR NR 72 59.3 49.11 30.97 26.81 12.88 NR NR NR NR NR NR NR 73 32.83 35.34 45.92 72.59 65.83 46.98 22.76 15.27 14.04 NR NR NR 74 6.32 7.52 3.25 2.97 1.39 NR NR NR NR NR NR NR 76 NR NR NR NR NR NR NR NR NR NR NR NR 77 10.15 6.82 5.42 5.11 3.05 NR NR NR NR NR NR NR 78 44.37 42.39 36.98 72.79 57.82 49.62 61.96 60.65 33.71 19.37 30.79 25.67 83 87.94 90.14 56.98 52.64 51.75 74.56 95.5 77.48 66.62 93.64 95.66 77.17 90 NR NR NR NR NR NR NR NR NR NR NR NR 97 NR NR NR NR NR NR NR NR NR NR NR NR

117 NR NR NR NR NR NR NR NR NR NR NR NR 118 NR NR NR NR NR NR NR NR NR NR NR NR 163 NR NR NR NR NR NR NR NR NR NR NR NR

21

India Category 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

1 100 99.96 99.66 99.95 99.78 99.94 92.01 99.85 93.17 100 99.93 93.57 2 99.97 99.89 99.72 99.86 99.87 96.3 90.38 88.62 94.43 77.99 66.81 62.37

2A 42.03 37.55 66.31 62.08 65.45 68.99 47.41 73.62 99.97 85.63 48.2 46.63 3 99.98 99.81 99.92 99.9 99.98 99.56 78.93 70.68 48.28 43.44 23.97 20.59

3A 12.56 18.97 36.97 37.74 57.76 44.06 56.64 52.67 45.4 44.39 38 34.18 4 99.93 99.58 99.99 99.75 99.98 99.85 99.98 96.32 100 99.98 99.99 93.83 5 99.92 98.36 99.96 99.74 99.85 95.35 99.92 90.96 100 99.93 99.99 91.15 6 99.75 98.81 99.99 99.78 99.97 100 99.91 89.12 100 99.96 99.94 91.41 7 99.89 99.36 95.94 99.76 99.8 95.76 97.61 93.16 86.25 99.91 99.99 92.34 8 99.88 99.71 99.99 99.87 89.57 92.29 94.25 90.36 99.04 99.95 99.97 99.49 9 71.78 99.99 99.99 99.97 98.95 81.78 95.79 91.57 79.62 64.88 75.85 79.56 10 NR NR NR NR NR NR NR NR NR NR NR NR 12 NR NR NR NR NR NR NR NR NR NR NR NR 13 NR NR NR NR NR NR NR NR NR NR NR NR 14 NR NR NR NR NR NR NR NR NR NR NR NR 15 22.55 28.43 66.37 37.82 25.52 15.91 18.25 49.72 67.68 19.61 17.57 17.13 16 NR NR NR NR NR NR NR NR NR NR NR NR 17 NR NR NR NR NR NR NR NR NR NR NR NR 18 NR NR NR NR NR NR NR NR NR NR NR NR 19 NR NR NR NR NR NR NR NR NR NR NR NR 21 NR NR NR NR NR NR NR NR NR NR NR NR 22 NR NR NR NR NR NR NR NR NR NR NR NR 23 NR 93.26 87.55 72.27 91.18 51.61 56.96 76.44 70.58 96.46 78.56 88.12 24 NR 98.36 75.68 94.88 87.56 61.76 84.54 88.88 59.8 NR NR NR 26 98.64 99.93 99.96 99.82 95.69 100 99.97 76.27 99.97 99.91 99.99 88.11 27 87.51 99.77 99.99 86.46 76.59 78.39 78.82 82.89 67.8 NR NR NR 28 NR NR NR NR NR NR NR NR NR NR NR NR 29 45.6 49.34 94.05 49.3 44.53 27.45 54.5 59.35 40.58 38.87 48.32 33.99 31 NR NR NR NR NR NR NR NR NR NR NR NR 32 NR NR NR NR NR NR NR NR NR NR NR NR 33 NR NR NR NR NR NR NR NR NR NR NR NR 35 NR NR NR NR NR NR NR NR NR NR NR NR 37 NR NR NR NR NR NR NR NR NR NR NR NR

37 A NR NR NR NR NR NR NR NR NR NR NR NR 39 83.29 99.16 100 99.05 99.86 99.88 87.08 92.82 88.84 86.93 100 86.69 61 NR NR NR NR NR NR NR NR NR NR NR NR 68 NR NR NR NR NR NR NR NR NR NR NR NR 72 NR NR NR NR NR NR NR NR NR NR NR NR 73 NR NR NR NR NR NR NR NR NR NR NR NR 74 NR NR NR NR NR NR NR NR NR NR NR NR 76 NR NR NR NR NR NR NR NR NR NR NR NR 77 NR NR NR NR NR NR NR NR NR NR NR NR 78 NR NR NR NR NR NR NR NR NR NR NR NR 83 NR NR NR NR NR NR NR NR NR NR NR NR 90 NR NR NR NR NR NR NR NR NR NR NR NR 97 NR NR NR NR NR NR NR NR NR NR NR NR


22

Indonesia Category 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

1 97.66 99.9 99.91 99.82 99.89 99.76 60.89 31.89 38.75 57.64 67.12 44.64 2 84.09 85.14 90.78 92.35 100 99.7 93.42 69.01 90.91 92.15 73.11 59.54

2A 59.45 42.86 40.74 48.18 51.41 50.39 37.61 35.04 83.48 83.74 49.26 55.5 3 85.29 76.06 78.27 89.85 100 100 95.42 74.4 74.52 82.12 70.86 54.67

3A 68.82 59.65 65.5 51.93 44.76 42.21 39.86 28.38 29.96 31.24 28.98 23.23 4 94.71 88.67 77.08 67.43 66.1 65.48 81.52 86.98 89.3 78.32 84.7 92.85 5 99.95 99.96 99.97 99.91 100 99.75 99.97 98.12 99.72 97.62 99.96 97.59 6 82.68 91.52 74.04 83.17 73.21 86.36 99.95 100 99.26 99.91 99.98 90.95 7 77.65 85.93 79.65 76.8 78.4 86.06 90.96 88.62 79.27 58.26 54.23 61.91 8 92.81 91.81 82.98 81.62 94.01 99.78 98.67 86.74 74.92 78.33 64.3 60.21 9 NR NR NR NR NR NR NR NR NR NR NR NR 10 NR NR NR NR NR NR NR NR NR NR NR NR 12 NR NR NR NR NR NR NR NR NR NR NR NR 13 NR NR NR NR NR NR NR NR NR NR NR NR 14 NR NR NR NR NR NR NR NR NR NR NR NR 15 NR NR NR NR NR NR NR NR NR NR NR NR 16 NR NR NR NR NR NR NR NR NR NR NR NR 17 NR NR NR NR NR NR NR NR NR NR NR NR 18 NR NR NR NR NR NR NR NR NR NR NR NR 19 NR NR NR NR NR NR NR NR NR NR NR NR 21 97.18 87.9 80.46 76.19 79.82 69.37 63.09 60.05 49.43 NR NR NR 22 NR NR NR NR NR NR NR NR NR NR NR NR 23 NR 96.38 70.03 98.7 100 94.44 91.62 78.38 65.53 83.74 64.48 59.9 24 NR NR NR NR NR NR NR NR NR NR NR NR 26 NR NR NR NR NR NR NR NR NR NR NR NR 27 NR NR NR NR NR NR NR NR NR NR NR NR 28 NR NR NR NR NR NR NR NR NR NR NR NR 29 NR NR NR NR NR NR NR NR NR NR NR NR 31 NR NR NR NR NR NR NR NR NR NR NR NR 32 NR NR NR NR NR NR NR NR NR NR NR NR 33 NR 90.01 70.19 49.42 16.53 41.98 24.62 20.08 13.95 NR NR NR 35 100 100 100 100 99.37 99.93 82.54 58.41 61.3 51.64 33.37 21.42 37 NR NR NR NR NR NR NR NR NR NR NR NR

37 A NR NR NR NR NR NR NR NR NR NR NR NR 39 NR NR NR NR NR NR NR NR NR NR NR NR 61 NR NR NR NR NR NR NR NR NR NR NR NR 68 NR NR NR NR NR NR NR NR NR NR NR NR 72 NR NR NR NR NR NR NR NR NR NR NR NR 73 NR NR NR NR NR NR NR NR NR NR NR NR 74 NR NR NR NR NR NR NR NR NR NR NR NR 76 NR NR NR NR NR NR NR NR NR NR NR NR 77 NR NR NR NR NR NR NR NR NR NR NR NR 78 NR NR NR NR NR NR NR NR NR NR NR NR 83 NR NR NR NR NR NR NR NR NR NR NR NR 90 NR NR NR NR NR NR NR NR NR NR NR NR 97 NR NR NR NR NR NR NR NR NR NR NR NR


Notes: 1/ NR: No restrictions 2/ S: Surveillance Source: Système Intégré de Gestion de Licenses

23

Table A 2: Description of EU Product Categories Category Description

1 Cotton yarn, not put up for retail sale (K) 2

2 A

Woven fabrics of cotton, other than gauze, terry fabrics, pile fabrics, chenille fabrics, tulle and other net fabrics (K) Of which: Other than unbleached or bleached

3

3 A

Woven fabrics of synthetic fibres (discontinuous or waste) other than narrow woven fabrics, pile fabrics (incl. terry fabrics) and chenille fabrics (K) Of which: Other than unbleached or bleached

4

4C

Shirts, T-shirts, lightweight fine knit roll, polo or turtle necked jumpers and pullovers (other than of wool or fine animal hair), undervests and the like, knitted or crocheted (P) Such goods, which must not exceed 130 cm, are designated as 4C.

5 Jerseys, pullovers, slip-overs, waistcoats, twinsets, cardigans, bed-jackets and jumpers (others than jackets and blazers), anoraks, wind-cheaters, waister jackets and the like, knitted or crocheted (P)

6 Men's or boys' woven breeches, shorts other than swimwear and trousers (incl. slacks); women's or girls’ woven trousers and slacks, of wool, of cotton or of man made fibres; lower parts of track suits with lining, others than category 16 or 29, of cotton or of man-made fibres (P)

7 Women's or girls’ blouses, shirts and shirt-blouses, whether or not knitted or crocheted, of wool, of cotton or man-made fibres (P)

8 Men's or boys' shirts, other than knitted or crocheted, of wool, cotton or man-made fibres (P)

9 Terry towelling and similar woven terry fabrics of cotton; toilet linen and kitchen linen, other than knitted or crocheted, of terry towelling and woven terry fabrics, of cotton (K)

10 Gloves, mittens and mitts, knitted or crocheted (P)

12 Panty-hose and tights, stockings, understockings, socks, ankle-socks, sockettes and the like, knitted or crocheted, other than for babies, including stockings for varicose veins, other than products of category 70 (P)

13 Men's or boys’ underpants and briefs, women's or girls’ knickers and briefs, knitted or crocheted, of wool, of cotton or of man-made fibres (P)

14 Men's or boys’ woven overcoats, raincoats and other coats, cloaks and capes, of wool, of cotton or of man-made textile fibres (other than parkas) (of category 21) (P)

15 Women's or girls’ woven overcoats, raincoats and other coats, cloaks and capes; jackets and blazers, of wool, of cotton or of man-made textile fibres (other than parkas) (of category 21) (P)

16 Men's or boys’ suits and ensembles, other than knitted or crocheted, of wool, of cotton or of man-made fibres, excluding ski suits; men's or boys’ track suits with lining, with an outer shell of a single identical fabric, of cotton or of man-made fibres (P)

17 Men's or boys’ jackets or blazers, other than knitted or crocheted, of wool, of cotton or of man-made fibres (P)

18

Men's or boys’ singlets and other vests, underpants, briefs, nightshirts, pyjamas, bathrobes, dressing gowns and similar articles, other than knitted or crocheted (K) Women's or girls’ singlets and other vests, slips, petticoats, briefs, panties, night-dresses, pyjamas, négliges, bathrobes, dressing gowns and similar articles, other than knitted or crocheted

19 Handkerchiefs, other than knitted or crocheted (P) 20 Bed linen, other than knitted or crocheted (K)

21 Parkas; anoraks, windcheaters, waister jackets and the like, other than knitted or crocheted, of wool, of cotton or of man-made fibres; upper parts of tracksuits with lining, other than category 16 or 29, of cotton or of man-made fibres (P)

22 Yarn of staple or waste synthetic fibres, not put up for retail sale (K)

23 Yarn of staple or waste artificial fibres, not put up for retail sale (K)

24

Men's or boys’ nightshirts, pyjamas, bathrobes, dressing gowns and similar articles, knitted or crocheted (P) Women's or girls’ night-dresses, pyjamas, négliges, bathrobes, dressing gowns and similar articles, knitted or crocheted

26 Women's or girls’ dresses, of wool, of cotton or of man-made fibres (P) 27 Women's or girls’ skirts, including divided skirts (P)

24

28 Trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted, of wool, of cotton or of man-made fibres (P)

29 Women's or girls’ suits and ensembles, other than knitted or crocheted, of wool, of cotton or of man-made fibres, excluding ski suits; women's or girls’ track suits with lining, with an outer shell of an identical fabric, of cotton or of man-made fibres (P)

31 Brassières, woven, knitted or crocheted (P)

32 Woven pile fabrics and chenille fabrics (other than terry towelling or terry fabrics of cotton and narrow woven fabrics) and tufted textile surfaces, of wool, of cotton or of man-made textile fibres (K)

33

Woven fabrics of synthetic filament yarn obtained from strip or the like of polyethylene or polypropylene, less than 3 m wide (K) Sacks and bags, of a kind used for the packing of goods, not knitted or crocheted, obtained from strip or the like

35

Woven fabrics of synthetic fibres (continuous), other than those for tyres of category 114 (K)

37 37 A

Woven fabrics of artificial staple fibres (K) Of which:Other than unbleached or bleached

38B Net curtains, other than knitted or crocheted

39 Table linen, toilet linen and kitchen linen, other than knitted or crocheted, other than of terry towelling or a similar terry fabrics of cotton (K)

40 Woven curtains ( including drapes, interior blinds, curtain and bed valances and other furnishing articles), other than knitted or crocheted, of wool, of cotton or of man-made fibres (K)

59 Carpets and other textile floor coverings, other than the carpets of category 58 (K)

61

Narrow woven fabrics, and narrow fabrics (bolduc) consisting of warp without weft, assembled by means of an adhesive, other than labels and similar articles of category 62 Elastic fabrics and trimmings (not knitted or crocheted), made from textile materials assembled from rubber thread (K)

67

Knitted or crocheted clothing accessories other than for babies; household linen of all kinds, knitted or crocheted; curtains (incl. drapes) and interior blinds, curtain or bed valances and other furnishing articles knitted or crocheted; knitted or crocheted blankets and travelling rugs, other knitted or crocheted articles including parts of garments or of clothing accessories (K)

68 Babies' garments and clothing accessories, excluding babies' gloves, mittens and mitts of categories 10 and 87, and babies' stockings, socks and sockettes, other than knitted or crocheted, of category 88 (K)

72 Swimwear, of wool, of cotton or of man-made fibres (P) 73 Track suits of knitted or crocheted fabric, of wool, of cotton or of man-made textile fibres (P)

74 Women's or girls’ knitted or crocheted suits and ensembles, of wool, of cotton or of man-made fibres, excluding ski suit (P)

76 Men's or boys’ industrial or occupational clothing, other than knitted or crocheted (K) Women's or girls’ aprons, smock overalls and other industrial or occupational clothing, other than knitted or crocheted

77 Ski suits, other than knitted or crocheted (K)

78 Garments, other than knitted or crocheted, excluding garments of categories 6, 7, 8, 14, 15, 16, 17, 18, 21, 26, 27, 29, 68, 72, 76 and 77 (K)

83 Overcoats, jackets, blazers and other garments, including ski suits, knitted or crocheted, excluding garments of categories 4, 5, 7, 13, 24, 26, 27, 28, 68, 69, 72, 73, 74, 75 (K)

87 Gloves, mittens and mitts, not knitted or crocheted (P)

88 Stockings, socks and sockettes, not knitted or crocheted; other clothing accessories, parts of garments or of clothing accessories other than for babies, other than knitted or crocheted (P)

90 Twine, cordage, ropes and cables of synthetic fibres, plaited or not (K) 91 Tents (K)

96 Non-woven fabrics and articles of such fabrics, whether or not impregnated, coated, covered or laminated (K)

97 Nets and netting made of twine, cordage or rope and made up fishing nets of yarn, twine, cordage or rope (K)

112 Other made up textile articles, woven, excluding those of categories 113 and 114 (K) 115 Flax or ramie yarn (K) 117 Woven fabrics of flax or of ramie (K)

25

118 Table linen, toilet linen and kitchen linen of flax or ramie, other knitted or crocheted (K)

120 Curtains ( incl. drapes), interior blinds, curtain and bed valances and other furnishing articles, not knitted or crocheted, of flax or ramie (K)

148B Coir yarn

154

Silkworm cocoons suitable for reeling (K); Raw silk (not thrown); Silk waste( incl. cocoons unsuitable for reeling), yarn waste and garnetted stock, not carded or combed Wool not carded or combed; Fine or coarse animal hair, not carded or combed; Waste of wool or of fine or coarse animal hair, including yarn waste but excluding garnetted stock Garnetted stock of wool or of fine or coarse animal hair; Flax, raw or processed but not spun: flax tow and waste (including yarn waste and garnetted stock); Ramie and other vegetable textile fibres, raw or processed but not spun: tow, noils and waste, other than coir and abaca of heading N° 5304; Cotton, not carded nor combed; Cotton waste (incl. yarn waste and garnetted stock); True hemp (cannabis sativa), raw or processed but not spun: tow and waste of true hemp (including yarn waste and garnetted stock); Abaca (Manila hemp or Musa Textilis Nee),raw or processed but not spun: tow and waste of abaca (including yarn waste and garnetted stock); Jute or other textile bast fibres ( excl. flax, true hemp and ramie),,raw or processed but not spun: tow and waste of jute or other textile bast fibres (including yarn waste and garnetted stock); Other vegetable textile fibres, raw or processed but not spun: tow and waste of such fibres (including yarn waste and garnetted stock)

156 Blouses and pullovers knitted or crocheted of silk or silk waste for women and girls (K) 157 Garments, knitted or crocheted, other than those of categories 1 to 123 and 156 (K) 161 Garments, not knitted or crocheted, other than those of categories 1 to 123 and category 159 (K) 163 Gauze and articles of gauze put up in forms or packings for retail sale (K)

Source: Système Intégré de Gestion de Licenses

unravelling eu quotas on textiles and clothing · the voluntary export restraints of the 1930s....

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